Erste Bank JPMorgan Merrill Lynch International

Dividends—Non-Resident Shareholders
In the case of a non resident individual shareholder, investment income tax amounts to 25% and
is withheld at source. The income of a non resident shareholder from dividends paid in Austria is
subject to the withholding of investment income tax as final taxation, unless a lower tax rate applies
pursuant to a DTA between Austria and the country of the shareholder’s residence.
Dividend payments to a company that (i) is resident in another EU member state and (ii) has one
of the legal forms listed in the EC Parent Subsidiary Directive (Directive No. 90/435/EEC of the
Council dated July 23, 1990 (EC Official Journal No. L 225, page 6)) (an “EU company”) are exempt
from investment income tax by virtue of §94a EStG if, for an uninterrupted period of at least one year,
the company directly held at least 10% of the company’s share capital and there is no tax avoidance,
abuse of law or tax fraud involved. If the one-year holding period requirement is not fulfilled until after
the dividend payment has been made, investment income tax that has been withheld will be refunded
after completion of the one-year minimum holding period upon request. Dividends which are attributable
to a permanent establishment in the EU are also exempt from investment income tax (the 25%
withholding tax is refunded or might not be withheld at source). All other corporations are subject to
the 25% investment income tax.
Pursuant to the DTA between Germany and Austria (“DTA-Germany”), the withholding tax on
dividends paid to German investors, to which the DTA-Germany applies, may not exceed 15%. If the
German investor is a corporation (but not a partnership) directly holding at least 10% of the share
capital of the dividend paying company, the tax rate may not exceed 5%. Pursuant to § 94a EStG, the
withholding tax will be reduced to 0% if the conditions of § 94a EStG are met, see above.
Pursuant to the DTA between Switzerland and Austria (“DTA-Switzerland”), the withholding tax on
dividends paid to Swiss investors, to which the DTA-Switzerland applies, may not exceed 15%. If the
investor is a corporation (but not a partnership) directly holding at least 20% of the share capital of the
dividend paying company, the tax rate is reduced to 0%. The applicability of the DTA-Switzerland
should be reviewed on a case-by-case basis because it contains several specific exemptions.
Pursuant to the DTA between the USA and Austria (“DTA-USA”), the withholding tax on dividends
paid to US investors, to which the DTA-USA applies, may not exceed 15%. If the investor is a
corporation (but not a partnership) directly holding at least 10% of the voting rights of the dividend
paying company, the tax rate may not exceed 5%.
Pursuant to the DTA between the United Kingdom and Austria (“DTA-UK”), the withholding tax for
British investors to which the DTA-UK applies may not exceed 15%. If the investor directly or indirectly
holds more than 25% of the voting rights of the dividend paying company, the withholding tax may not
exceed 5%. Pursuant to § 94a EStG, the withholding tax will be reduced to 0% if the conditions of
§ 94a EStG are met, see above.
In order to obtain the favorable withholding tax rates under one of the DTAs listed above or
another DTA, non-resident shareholders must file an application with the Austrian tax authorities. A
certificate of residency from the tax authorities of the country of residence of the shareholder
confirming that the shareholder is tax resident in such country must be enclosed with the application.
A refund form and instructions for this form are available on the website of the Federal Ministry of
Finance (www.bmf.gv.at). (Information on the website of the Federal Ministry of Finance is not
incorporated by reference into this Prospectus.)
Pursuant to the ordinance on DTA relief which entered into force on July 1, 2005 (“DBA-
Entlastungsverordnung”, Federal Gazette III No. 92/2005 as amended in Federal Gazette II No. 44/
2006), the reduced tax rate as provided for in the applicable DTA may be applied immediately at the
source in all cases if certain evidence is provided (in particular, a qualified tax certificate of residency
and, for corporations, certain additional evidence) and no grounds for rejecting such application exist
(e.g., dividend payments to foreign private foundations/investment funds/trusts/double resident companies).
However, the Issuer has not put into place procedures which allow for relief at source and
therefore, non-resident shareholders which are eligible for benefits under an applicable DTA will be
required to apply for a refund of all or a portion of the withheld taxes.
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